"One of the perceptible challenges before the Indian pharmaceutical industry is the gradual erosion of domestic manufacturing capacity for certain keys APIs (Active Pharmaceutical Ingredients) and their advanced intermediates", said a study conducted by Assocham.
As Indian pharmaceutical companies are moving up the value chain to focus on value-added formations with higher margins, they have become severely dependent on imports for many essential and large-volume drugs, the study said. In the past few years, leading Indian drug makers such as Ranbaxy, Sun Pharma, Aurobindo Pharma, Lupin went up the value chain making a shift from API to formulations.